Apple interested in buying beleaguered RIM?

15 years ago

Sean Farhy writes for Seeking Alpha, “Here’s a list of reasons why RIMM is in play:

• RIMM has no debt, a future p/e of 9x and future price to revenues of less than 1x.
• RIMM”s market cap is now under $15 Billion.
• RIMM controls 8% of the hardware market, and 25% of the smart phone market.
• RIMM has excellent branding and inroads when it comes to the “corporate client.”
• RIMM’s new Playbook note pad could make an excellent product line for one of the companies listed below to venture into.
• QNX, RIMM’s new Blackberry operating system, is where the bulk of RIMM’s R&D is being spent. A discontinuation of QNX and elimination of more employees could add value to the equity side by reducing expenses and preserving assets.
• RIMM has over $4 in cash per share.

Farhy writes that one of the potential acquirers is Apple: “Apple would certainly be ironic, as five years ago there were only two players (APPL & RIMM) in the now extremely crowded smart phone space. Apple could conceivably buy it to get RIMM out of the way, as it’s been a thorn in its side; to enter into the corporate and business side of the market, making it more than a ‘gadget’ company; and/or to create an iPhone / Blackberry combination that could be a dominant force in the smart phone market and winning back market share from Google’s Android. I still view this as extremely unlikely union because of the Playbook factor, but I have warmed more to this becoming a potential reality after RIMM’s earnings.”

MacDailyNews Take: Apple has already entered the corporate market with both iPhone and iPad. They don’t need RIM. Now, what “PlayBook factor?” It’s already dead (see: Beleaguered RIM slashes PlayBook production plans – June 22, 2011). All any company would need to do is mercifully pull the plug. And Apple is already winning back share from Google’s derivative Android.

Farhy writes, “Microsoft is our most logical choice…”